Are you an investor looking for a great deal on a property? Then one often-overlooked category to consider is probate properties. What are probate real estate properties? And how can they help you? Here's what you need to know.
What Is Probate Real Estate?
Simply put, probate properties are those that are still in the legal process of probate after the owner has passed away. During this process, the court confirms a will or other estate documents are valid and that assets should be distributed in accord with them.
When a piece of real estate must be sold in order to distribute its financial value to one or more heirs, the property is put up for sale while still in probate. An executor generally handles the preparation, listing, and sale of the home.
How Can Probate Properties Benefit Investors?
Investors usually look for real estate that they can get for the lowest price but with the best condition in relation. The most common way to find these cheap prices is in foreclosed or distressed homes. However, the homes may be in bad condition.
Probate properties, though, are often sold at a lower price than normal because the heirs either have agreed on a value or plan to sell quickly. And these homes have the advantage of having been lived in and cared for rather than destroyed by tenants or deadbeat owners. So, while you may not get quite as low a price, you often acquire a property that is in much better condition.
Another plus for investors is that probate properties often need to be wrapped up quickly so the value can be distributed and the legal case closed. This fits well for many short-term real estate investors who want a quick purchase that will cut into their profit margin as little as possible. Fast sales by motivated executors and heirs mean a house flipper minimizes wasted time and money.
Where Can You Learn More?
The probate real estate market can be different from the standard real estate market, so you can't always count on finding homes the usual way. Some investors gather information from public records, but this is a time-consuming process.
A better place to begin is to work with a real estate agent that specializes in probate properties. They will work with you to find the right kind of investment property for the best deal. To learn more about this niche market that could be a gold mine for your investment purposes, reach out to a local real estate office, like Maher Probate Realty.
